UBS Revises Cipla Target Downward Amid Supply Concerns
UBS has adjusted its rating on pharmaceutical giant Cipla to neutral, slashing the target price from Rs 1,750 to Rs 1,400. Analysts noted that while the company's long-term growth drivers remain robust, near-term outlook is clouded by supply chain disruptions. Specifically, key product Lanreotide is facing significant supply issues, creating headwinds that could impact short-term performance.
Despite these challenges, UBS emphasized that Cipla's healthy product pipeline is poised to drive earnings into FY28, offering medium-term growth potential. However, the lack of immediate catalysts tempers optimism, suggesting investors should brace for volatility in the coming quarters.
Motilal Oswal Initiates Coverage on Bajaj Finserv
Motilal Oswal Securities has commenced coverage of Bajaj Finserv with a neutral rating, setting a target price of Rs 1,900. Analysts highlighted the company's strong position in the lending business, citing its impressive scale, profitability, and extensive customer base of approximately 11 crore.
The firm remains a core value contributor, delivering predictable earnings, a strong return on equity (ROE), and sustained compounding growth. This stability makes it an attractive option for risk-averse investors seeking steady returns in the financial sector.
Jefferies Bullish on LG India Amid Summer Trends
Jefferies has issued a buy rating on LG India, with a target price of Rs 1,910. Analysts pointed to favorable initial summer trends and recent price hikes of 7-9% in 3 and 5-star air conditioners during the January-March quarter (Q4FY26).
Further price increases of 5-10% are anticipated in April due to a weak rupee and rising raw material costs. While LPG shortages pose a key industry risk, companies are exploring alternative fuel sources. LG India's exports account for 6% of sales, with West Asia representing a smaller portion, mitigating some regional exposure.
Nomura Adjusts EClerx Services Target
Nomura maintains a buy rating on EClerx Services but has reduced the target price from Rs 2,800 to Rs 2,200. Analysts commended the company's healthy annual contract value and visible sales effectiveness, evidenced by strong deal wins and a robust pipeline.
EClerx aims to reinvest margins while keeping guidance intact, with the stock trading at an attractive valuation of 14.6 times FY28 earnings per share (EPS), presenting a potential value opportunity for investors.
CLSA Highlights Coforge's AI Positioning
CLSA has assigned a high conviction outperform rating to Coforge, with a target price of Rs 2,278. Following a meeting with the CEO, analysts discussed the latest AI narrative and Coforge's strategic positioning. The CEO emphasized that AI will not be deflationary for service providers with domain and technical expertise to build AI solutions.
Similar to opportunities in hybrid cloud and SaaS managed services over the past decade, Coforge anticipates significant managed services opportunities around managing frontier models and orchestrating AI agents. Proof of success will be visible in growth metrics like NTM executable orderbook, revenue per employee, and EBIT margins, with analysts reiterating mid-teens US dollar revenue growth.
JP Morgan Upbeat on United Spirits Divestiture
JP Morgan has an overweight rating on United Spirits, with a target price of Rs 1,565. The company announced the full divestiture of its stake in Royal Challengers Sports for Rs 16,660 crore (Rs 230 per share). After tax adjustments, this is expected to accrue Rs 195-200 per share.
This move follows a strategic review announced on November 5, 2025, as United Spirits aims to sharpen focus on its core alcoholic beverage business. The transaction is slated for completion within six months, pending necessary approvals, potentially unlocking significant shareholder value.
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